India's States Power Ahead: Clean Energy Tenders Defy Federal Surplus

India's subnational governments are forging ahead with their own clean energy tenders, a move that persists despite federal agencies holding a substantial surplus of nearly 50 GW in unsold renewable power. This ongoing development highlights a shift in the renewable energy landscape, where state-driven initiatives are becoming increasingly crucial for capacity expansion.

The federal government has indicated that states are not restricted from pursuing their own tender processes. This comes as federally procured renewable energy projects have faced difficulties in finding buyers, largely due to outstanding transmission infrastructure and regulatory hurdles. Industry representatives had previously suggested that states pause new tenders to utilize the existing surplus, but this approach is not being mandated.

Despite these unsold inventories, the outlook for clean energy remains positive, buoyed by rising power demand fueled by economic growth and energy-intensive sectors. India has a clear target of reaching 500 GW of non-fossil fuel power capacity by the year 2030, with state-led tenders anticipated to play a pivotal role in achieving this objective.